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jderaney

11/02/05 8:19 PM

#8400 RE: Phil(Hot Rod Chevy) #8328

You are the one a little short on accounting knowledge. Those Payables are due within a year or at the end of the accounting cycle, whichever is longer. Therefore, not all the liabilities are due immediately. They can use a portion of that cash to buy inventory which they will then turnover into cash and receivables. The receivables, they are factoring.